Ahead of the celebration of the 78th Independence Day, brokerage Choice Broking has recommended buying in a largecap infra stock, Larsen & Toubro. This large is a multi-bagger and also the maker of Ayodhya Ram Mandir. All-time gains of L&T are breathtaking by 19,389.57% on NSE.
Why BUY L&T?
As per Choice Broking, L&T recently has formed an ascending triangle and showing reversal from the support level, accompanied by significant trading volume. There are expectations of further upward momentum, with potential targets at Rs 3,925 and Rs 4,100.
Further, the brokerage highlighted that L&T is trading above crucial Exponential Moving Averages (EMAs), including the 20-day and 50-day, indicating a robust bullish momentum and suggesting the possibility of sustained upward price movement.
Also, the Relative Strength index (RSI) is at 46, indicating an upward trend and confirming an increase in buying momentum.
Furthermore, Choice Broking said that a prudent strategy involves considering buying opportunities during market dips at levels of Rs 3,540.
In summary, Choice's note said that given the technical analysis and current market conditions, L&T appears to offer a promised buying opportunity for those aiming for a target price of Rs 3,925 and Rs 4,100, contingent upon the implementation of prudent risk management measures.
L&T Share Price:
On NSE, after market hours, L&T stock stood at Rs 3,551 apiece on August 13, with a market cap of Rs 4,88,260.69 crore. The stock's 52-week high and low is at Rs 3,919.90 apiece and Rs 2,616.00 apiece respectively.
In a year, L&T shares gained by 33.50%, while in 5-years, the rally is massive nearly 166% making the stock a multibagger. All-time gains in L&T is breathtaking by 19,389.57%. The stock was merely at Rs 18.22 on January 1, 1999, which is about 25 years ago.
This infra giant is the maker of Ram Mandir assisted by other companies. Since the time L&T got this important job of overseeing the construction of Ram Mandir, its stock price on stock exchanges has zoomed and emerged as a multi-bagger in more than three years.
L&T has been the lead constructor of Ram Mandir while assisted by Tata Construction Engineers. As per Wikipedia, L&T offered to oversee the design and construction of the temple free of cost and became the contractor of the project. Meanwhile, the Central Building Research Institute, the National Geophysical Research Institute and the Bombay, Guwahati and Madras IITs are assisting in areas such as soil testing, concrete and design.
In Q1FY25, L&T achieved Consolidated Revenues of ₹ 55,120 crore for the quarter ended June 30, 2024 registering a y-o-y growth of 15% with robust execution witnessed in the Projects & Manufacturing (P&M) portfolio on the back of a large order book. International revenues during the quarter at ₹ 26,248 crore constituted 48% of the total revenues.
While the company's Consolidated Profit After Tax (PAT) stood at Rs 2,786 crore, registering growth of 12% compared to the previous year. Further, it bagged orders worth ₹ 70,936 crore at the group level during the quarter ended June 30, 2024, registering a y-o-y growth of 8% aided by the strong ordering momentum in the Middle East.
The consolidated order book of the group as on June 30, 2024, is at ₹ 490,881 crore registers growth of 3% over Mar'24 and 19% y-o-y, with the share of international orders at 38%.
Larsen & Toubro is a USD 27 billion Indian multinational enterprise engaged in EPC Projects, Hi-Tech Manufacturing, and Services, operating across multiple geographies. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over eight decades.
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